Submitted by Tyler Durden on 08/23/2015 17:10 -0400
In “Who Is Stoking The Trillion Dollar Student Debt Bubble?,” we highlighted the rather disconcerting fact that in 2014, the US government gave out some $16 billion in loans to students attending colleges that graduated fewer than a third of their students after six years.
As WSJ suggested, accrediting agencies are part of the problem. “One problem may be that the accreditation game suffers from similar conflicts of interest as those which caused ratings agencies like Moody’s and S&P to rate subprime-ridden MBS triple-A in the lead-up to the crisis,” we argued.
In the end, the disbursal of billions in federal aid to students attending schools where they’re unlikely to graduate is, like lending to students that attend for-profit colleges that the government is fully aware will likely one day be shut down, just another example of the misappropriation of taxpayer funds.
Well, if you needed further evidence of this, look no further than the Pell grant program.
As NBC reminds us, “Pell grants are given to low-income families and, unlike student loans, do not need to be paid back – [they] are the costliest education initiative in the nation.”
Continue reading “Government Gives Away Billions In Grants To Students Who Never Graduate”
